Welcome!

Microservices Expo Authors: Yeshim Deniz, Carmen Gonzalez, Elizabeth White, AppNeta Blog, Kong Yang

Related Topics: Microservices Expo

Microservices Expo: Article

Why Services Are Like Craigslist

And why the big software vendors will be singing the blues

I caught a review in Fast Company of an interview that Craig Newmark of Craigslist had with ABC's Nightline News. I didn't see the interview myself, but Fast Company did a good job highlighting the more important points, including the fact that Craigslist, which offer free classified ads, is killing the local newspapers.

Get this:
"...There was the complaint that the site is hurting the newspaper business, stealing away those who would buy classified ads. According to Nightline, this shift has created an annual loss of $50 million in San Francisco alone."

Fast Company further says:

"Why must Newmark and Craigslist answer for the papers' failings? Craigslist has become one of the top Web sites in the world (three billion page views per month) as new features and additional cities have been added to the line-up. Users preach the virtues of the free classified service. I think Craigslist shows the value of presenting people a free service with wide capabilities (Google also comes to mind). If anything, traditional media should learn from such online innovators and adapt more quickly to the new landscape, rather than complain about it."

Exactly, and spot on! He who creates the best innovative and cost-effective service wins the game. This includes Google, eBay, Amazon, and, of course, Craigslist. Moreover, this is also very much like the battle brewing between the traditional software powerhouses and the up-and-coming Web Services marketplace, including guys such as StrikeIron, Salesforce.com's AppExchange, and NetSuite's NetFlex.

While most SaaS providers and service marketplaces don't give away business applications and services like Craigslist gives away classified ads, the number of free or cheap business services available on the Web is expanding rapidly. For instance, I'm not sure you can buy better or more cost-effective mapping software for a business than Google Maps or create an auction site better than eBay, and those services are free or inexpensive, and best of all they're on-demand.

Moving up, you have guys like Saleforce.com and NetSuite who are providing world-class CRM applications as a service, using a subscription model that's only a fraction of the cost of traditional enterprise applications. Moreover, you have the emerging Web Services marketplaces that are providing application services that you can mix and match into composites using similar subscription models, again, at only a fraction of the price of buying complete packages or building those services yourself.

In addition, the notion of mash-ups is going to push this along even faster as we learn how to mix and match both content and services to create new abstractions for use in hybrid Web-delivered applications and in the enterprise through emerging SOAs. We could get to a point were most application services actually exist outside the enterprise and thus enjoy the resulting reduction in costs and the ability to leverage best-of-breed applications. This is the final destination of Web 2.0.

So, in the same way that the large newspapers are complaining about new free on-demand services such as Craigslist, it's clear that the larger software vendors are going to be singing the same blues and will have to adapt to survive as things move quickly to a SaaS model. In fact you may find that many of the major SaaS players are sucked up by the larger software guys to hobble this trend or to buy into this emerging market. Sometimes I wonder if they see this coming.

What's key here is that organizations can get better IT services through this trend and at a reduced cost of development and deployment. Moreover, as businesses change, the need to maintain both an architecture and a new paradigm is going to be critical, including developing their SOA as a platform for business processes and leveraging outside services (SaaS) to complete these processes.

More Stories By David Linthicum

Dave Linthicum is Sr. VP at Cloud Technology Partners, and an internationally known cloud computing and SOA expert. He is a sought-after consultant, speaker, and blogger. In his career, Dave has formed or enhanced many of the ideas behind modern distributed computing including EAI, B2B Application Integration, and SOA, approaches and technologies in wide use today. In addition, he is the Editor-in-Chief of SYS-CON's Virtualization Journal.

For the last 10 years, he has focused on the technology and strategies around cloud computing, including working with several cloud computing startups. His industry experience includes tenure as CTO and CEO of several successful software and cloud computing companies, and upper-level management positions in Fortune 500 companies. In addition, he was an associate professor of computer science for eight years, and continues to lecture at major technical colleges and universities, including University of Virginia and Arizona State University. He keynotes at many leading technology conferences, and has several well-read columns and blogs. Linthicum has authored 10 books, including the ground-breaking "Enterprise Application Integration" and "B2B Application Integration." You can reach him at [email protected] Or follow him on Twitter. Or view his profile on LinkedIn.

Comments (3) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
rabcraig 09/12/08 06:38:01 AM EDT

actually all the services should be like craigslist , simple fast and very cool.

Anna 04/26/06 06:40:50 PM EDT

Do the major SaaS players realize the big guys may want to buy them up? Salesforce.com and NetSuite were born in the pockets of Oracle's Larry Ellison. I'm sure they always know it's a possibility but are counting on Larry's good business sense to let them stay independent.

SYS-CON India News Desk 04/26/06 11:17:04 AM EDT

I caught a review in Fast Company of an interview that Craig Newmark of Craigslist had with ABC's Nightline News. I didn't see the interview myself, but Fast Company did a good job highlighting the more important points, including the fact that Craigslist, which offer free classified ads, is killing the local newspapers.

@MicroservicesExpo Stories
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
This recent research on cloud computing from the Register delves a little deeper than many of the "We're all adopting cloud!" surveys we've seen. They found that meaningful cloud adoption and the idea of the cloud-first enterprise are still not reality for many businesses. The Register's stats also show a more gradual cloud deployment trend over the past five years, not any sort of explosion. One important takeaway is that coherence across internal and external clouds is essential for IT right n...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To more closely examine the variety of ways in which IT departments around the world are integrating cloud services, and the effect hybrid IT has had on their organizations and IT job roles, SolarWinds recently released the SolarWinds IT Trends Report 2017: Portrait of a Hybrid Organization. This annual study consists of survey-based research that explores significant trends, developments, and movements related to and directly affecting IT and IT professionals.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Is your application too difficult to manage? Do changes take dozens of developers hundreds of hours to execute, and frequently result in downtime across all your site’s functions? It sounds like you have a monolith! A monolith is one of the three main software architectures that define most applications. Whether you’ve intentionally set out to create a monolith or not, it’s worth at least weighing the pros and cons of the different architectural approaches and deciding which one makes the most s...
Cloud Expo, Inc. has announced today that Aruna Ravichandran, vice president of DevOps Product and Solutions Marketing at CA Technologies, has been named co-conference chair of DevOps at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In large enterprises, environment provisioning and server provisioning account for a significant portion of the operations team's time. This often leaves users frustrated while they wait for these services. For instance, server provisioning can take several days and sometimes even weeks. At the same time, digital transformation means the need for server and environment provisioning is constantly growing. Organizations are adopting agile methodologies and software teams are increasing the speed ...
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, will discuss how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He will discuss how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Software as a service (SaaS), one of the earliest and most successful cloud services, has reached mainstream status. According to Cisco, by 2019 more than four-fifths (83 percent) of all data center traffic will be based in the cloud, up from 65 percent today. The majority of this traffic will be applications. Businesses of all sizes are adopting a variety of SaaS-based services – everything from collaboration tools to mission-critical commerce-oriented applications. The rise in SaaS usage has m...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, drew upon his own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He also discussed the implementation of microservices in data and application integrat...
We'd all like to fulfill that "find a job you love and you'll never work a day in your life" cliché. But in reality, every job (even if it's our dream job) comes with its downsides. For you, the constant fight against shadow IT might get on your last nerves. For your developer coworkers, infrastructure management is the roadblock that stands in the way of focusing on coding. As you watch more and more applications and processes move to the cloud, technology is coming to developers' rescue-most r...
2016 has been an amazing year for Docker and the container industry. We had 3 major releases of Docker engine this year , and tremendous increase in usage. The community has been following along and contributing amazing Docker resources to help you learn and get hands-on experience. Here’s some of the top read and viewed content for the year. Of course releases are always really popular, particularly when they fit requests we had from the community.
Even for the most seasoned IT pros, the cloud is complicated. It can be difficult just to wrap your head around the many terms and acronyms that make up the cloud dictionary-not to mention actually mastering the technology. Unfortunately, complicated cloud terms are often combined to the point that their meanings are lost in a sea of conflicting opinions. Two terms that are used interchangeably (but shouldn't be) are hybrid cloud and multicloud. If you want to be the cloud expert your company ne...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...